In a late-night move, the government of Pakistan has extended the deadline for filing income tax returns for the tax year 2024 until October 14, 2024. This extension provides an opportunity for individuals who were unable to meet the original deadline of September 30 to submit their returns without facing penalties.
The Federal Board of Revenue (FBR) initially resisted calls for an extension but ultimately made the decision following requests from various trade bodies, tax bars, and members of the public. Traders had specifically requested an extension due to issues with the FBR’s online tax portal, Iris, and originally sought a new deadline of October 31.
As of the September 30 deadline, FBR had received approximately 3.66 million tax returns, marking an 87.9% increase compared to the 1.95 million returns filed during the same period last year. Despite the overall growth in returns, there was a notable increase in “nil filers,” who submit returns but declare no taxable income. These accounted for 36.45% of all returns submitted, a significant rise from the previous tax year.
To address the issue of nil and notional filers—individuals who file returns only to benefit from lower tax rates—the government is considering stricter measures. Proposals include banning non-filers from engaging in financial activities such as purchasing cars, property, or financial instruments, and placing travel restrictions, except for religious pilgrimages such as Haj and Ziarat.
These steps aim to ensure greater tax compliance and reduce the exploitation of tax benefits by those who do not contribute to the tax system.
